84R7573 LED-D
By: Naishtat H.B. No. 2275
A BILL TO BE ENTITLED
AN ACT
relating to the authority of certain university systems to provide
benefits to certain qualified individuals.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1601.004(b)(2), Insurance Code, is
amended to read as follows:
(2) "Spouse" means a party to a marriage recognized by
the laws of this state, including an informal marriage under
Subchapter E, Chapter 2, [has the meaning assigned by the] Family
Code.
SECTION 2. Section 1601.107, Insurance Code, is amended to
read as follows:
Sec. 1601.107. COVERAGE FOR DEPENDENTS AND QUALIFIED
INDIVIDUALS. (a) An individual who is eligible to participate in
the uniform program under Section 1601.101, 1601.102, or 1601.1021
is entitled to secure for a dependent of the individual, or for a
qualified individual, any group coverages provided under this
chapter for dependents under rules adopted by the applicable
system.
(b) For purposes of this section, "qualified individual"
means an individual who:
(1) during the preceding 12 months has continuously
resided in the same household with an individual who is eligible to
participate in the uniform program as described by Subsection (a);
(2) is at least 18 years of age;
(3) is not the spouse of the eligible individual; and
(4) is directly dependent on, or interdependent with,
the eligible individual, sharing a common financial obligation as
described by Subsection (c).
(c) A relationship of dependence or interdependence under
Subsection (b)(4) may be established by providing:
(1) any three of the following documents:
(A) a joint loan obligation, mortgage, or lease,
or a document reflecting joint ownership of a vehicle;
(B) a life insurance policy, retirement benefits
account, or will of one of the individuals that designates the other
as beneficiary or executor;
(C) a mutually granted power of attorney for
purposes of health care or financial management;
(D) a document showing that each individual is
authorized to sign for purposes of the other's bank or credit
account; and
(E) documentary proof of a joint bank or credit
account; and
(2) a sworn statement attesting to authenticity and
truthfulness of documents and representations provided under this
section.
SECTION 3. Sections 1601.201(b) and (c), Insurance Code,
are amended to read as follows:
(b) For an employee designated by the system as working 40
or more hours a week, the system may contribute:
(1) the full cost of basic coverage for the employee;
[and]
(2) not more than 50 percent of the cost of dependent
coverage; and
(3) no amount of the cost of coverage of a qualified
individual, as that term is defined by Section 1601.107(b).
(c) For an employee designated by the system as working less
than 40 hours a week, including an individual employed by the system
in a position that as a condition of employment requires the
individual to be enrolled as a student in the system in
graduate-level courses, the system, from money appropriated from
the general revenue fund, may contribute:
(1) not more than 50 percent of the cost of basic
coverage for the employee; [and]
(2) not more than 25 percent of the cost of dependent
coverage; and
(3) no amount of the cost of coverage of a qualified
individual, as that term is defined by Section 1601.107(b).
SECTION 4. Section 1601.203, Insurance Code, is amended to
read as follows:
Sec. 1601.203. PAYMENT FOR COVERAGE FOR DEPENDENTS AND
QUALIFIED INDIVIDUALS. Contributions for coverages for a qualified
individual, as that term is defined by Section 1601.107(b), or for a
dependent of an individual eligible to participate in the uniform
program under Section 1601.101 or 1601.102 required of the
participant that exceed the amount of system contributions shall be
paid:
(1) by a deduction from the monthly compensation of
the participant;
(2) by a reduction of the monthly compensation of the
participant in the appropriate amount; or
(3) in the form and manner the system determines.
SECTION 5. The changes in law made by this Act apply only to
group coverages provided under Chapter 1601, Insurance Code,
beginning with the 2015-2016 plan year. A plan year before
2015-2016 is governed by the law as it existed immediately before
September 1, 2015, and that law is continued in effect for that
purpose.
SECTION 6. This Act takes effect September 1, 2015.